Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers Association (MBA) spoke a few weeks ago at the Federal Reserve Bank of Chicago’s 44th Annual Conference and one of the topics he discussed was reverse mortgages. Mr. Kieran said, “We are seeking laws and regulations under which we can function smoothly and in our customers’, as well as our own, best interests. We want laws and regulation that give no quarter to fraud and irresponsible practices, and that will also set the table for safe growth of what will soon be one of our industry’s biggest products—the reverse mortgage.”
Its been no secret that the MBA has been keeping a close eye on the reverse mortgage business for a while. The association hosted their first reverse mortgage conference earlier this year in San Diego which from what I’m told was successful but we haven’t seen how the MBA and NRMLA plan to coexist. The fact that they scheduled their individual conferences in the same week and opposite sides of the country show at the very least a lack of communication.
According to Mr. Kieran, the MBA’s residential board of governors is working on a set of guidelines for the industry best practices moving forward and he assures us that reverse mortgages will be dealt with specifically. He added, “We also want to make sure that our recommended best practices align with regulations, so that the industry is working hand in hand with regulators in a way that makes good business sense for everyone.”
Mr. Kieran ends with, “I dare say that everyone in this room is in favor of free markets. But I think we also realize that the invisible hand guiding them can sometimes slap us in the face. Because even an invisible hand needs the right information, and that takes the kind of transparency, which translates into trust.”
I’m all for transparency and I think everyone who is in our business for the right reasons feels the same. To read a copy of his speech to the Fed click the link below.
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Mortgage Bankers Association Addresses Chicago Federal Reverse About Reverse Mortgages